Rate Lock Advice & Mortgage Market Update
January 20, 2010, 8:30 PT
RATE LOCK ADVISORY
Lock Advice: FLOAT
MBS prices are up +9/32. Rates are improving this AM, I suggest that new locks be held until this afternoon. The PPI inflation data was mixed, while Housing Starts were lower than expected.
RATE NOTES:
When MBS prices are up, Rates are down.
Lock advice changes throughout the day.
Good economic news = Bad Rate News.
National Average Fixed Rate Mortgage
Unchanged at 5.15% on Jan.19
Fannie Mae Mortgage Backed Securities
MBS Opened at 4.796% Down 0.069%.
10 Year Treasury Currently 3.730% Up 0.03%
DJI Stocks $10,534.91, Down -190.52, -1.78%
European and Asian Markets Down -1.716%
Nymex Crude Oil Currently $77.09 Down $1.93
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FHA Changes are in the wind according to FHA Commissioner David H Stevens on a conference call to reporters today. UFMIP looks like it will increase to 2.25% from 1.75% this year and FHA will increase the downpayment requirement up to 10% for low FICO scores. The official FHA bulletin will be released on Jan. 21st. Read Bloomberg report
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Stupidity reigns as king within our bank owned government (BOG). See the lastest TBWS Video
California Rates 01-20-10, 8:00 PT
30 Year Fixed to $417,000
Rate 4.75%, Point 1.000, APR 5.006%
APR Based on $350,000 Loan at 80% LTV
Above Rate can be locked for 30 days.
Call for Quotes on FHA and VA loans With Detailed Cost Estimates.
No Application or Credit Report required
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